I think it's important to look at the crude futures curve – On TradingView I have shown the difference between the continuous front month contract and August 2023 contracts (code CL1! -NYMEX: CLQ2023) – this is now eyeing inversion, having been as high as $11. 90 in October. This is a big development in the crude complex as it removes a key reason for funds/producers to hold longs for the roll down into the next contract on expiry.
What else has caused the moves on the day?
We gear up to the next OPEC meeting on 4 Dec, which could even more focus if price breaks $70 – we have our eyes on US payrolls then, but the OPEC meeting could drive some solid cross-asset vol.
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